Bulgarian property market has entered a new phase towards end of 2007 and Q1 2008. The property market in Sofia achieved maturity and prices and now stable and predictable reflecting not only demand and supply, but additional factors like location, school, transportation and environmental factors. Varna emerged during last 12 months as the most expensive and desirable city in Bulgaria and Burgas, the second biggest city on the coast has registered highest number of building planning permission during last 6 months.
An interesting study by Industry Watch and Economedia has compared property prices, monthly incomes and standard of living in major cities and areas in Bulgaria in order to decide if local properties are overpriced or underpriced. The study was based on Sofia property prices and average incomes as basis reference point and compared regional property prices, incomes and standard of living.
Most overpriced came properties in Burgas, mainly due to holiday apartments in Sunny Beach, Sozopol, Nessebar and other holiday resorts around Burgas (+21.75). Prices in most of these off-plan developments do not reflect standard of living and local incomes, since most buyers and foreigners. Moderately overpriced are the areas of Varna, Dobrich, Sliven, Haskovo, and Stara Zagora (+3.0 – 8.0). Several major cities turned out to be significantly underpriced – Plovdiv (-14.26), Ruse (-16.17) and Pleven (-12.31). These are the regions where property investments are most likely going to achieve a good growth during next 12-18 months.